Quality higher education is a doorway to an array of career opportunities. However, with education costs rising at a rate of 10-12% every year, funding your child’s higher studies out of pocket may not be possible. In such situations, obtaining financial assistance via a loan becomes a necessity. While an education loan may be the first option you would turn to, a personal loan for higher studies may be more accessible, especially when you compare the eligibility terms involved.
Read on to know more about taking a personal loan to fund a higher education program.
Personal loan vs education loan
- While a personal loan is a collateral-free offering, an education loan may require you to pledge an asset as security, especially if the sanction crosses a certain limit. This implies arranging collateral, undertaking valuation, and producing documents, all of which can be time-consuming
- The eligibility criteria for an education loan tend to be elaborate. Lenders generally require the student to have a stellar track record, apply at a reputed institute, and opt for a job-oriented course. All of this can make qualifying for the loan a task. In comparison, the eligibility terms for a personal loan are less burdensome.
- Some lenders require you to make a down payment, around 15%, when availing an education loan. This means, you have to pay a portion of your education expenses out of pocket and in the absence of savings, this condition can prove to be a major obstacle. However, with a personal loan, a down payment is not required.
Now that you know why a personal loan for higher studies is preferable to an education loan, compare the options available to you and pick the one that meets your needs. When scouting for a personal loan, look beyond the sanction and interest rate and avail the one that offers value-added benefits as well. One such offering is the Bajaj Finserv Personal Loan for Higher Education. Take a look at the standout features that define this loan.
High-value sanction to cover all your expenses
Based on your eligibility, you can access a high-value sanction of up to Rs.25 lakh at a competitive interest rate from Bajaj Finserv. With ample finances available, you can cater to all your expenses without any worries. You can use it to pay tuition fees and hostel charges and use it for leisure-related spends as well.
Easy and flexible repayment terms for increased convenience
Since timely repayment is critical to safeguarding your finances and credit score, Bajaj Finserv offers easy repayment terms like a lengthy tenor and the flex loan facility. You can choose to repay your loan over a flexible tenor ranging up to 60 months, and thereby, keep your EMIs affordable. Similarly, you can also choose to avail of this loan as a Flexi personal loan and enjoy greater control and flexibility over withdrawals and repayments. Here, you can make multiple withdrawals from your sanction, as per your needs. This way, you can cater to term and hostel fees whenever they are due without needing to make fresh applications each time. Further, you pay interest only on the amount withdrawn and not the entire sanction. What’s more, you can manage your cash flow better by paying interest-only EMIs in the initial part of the tenor. This way, you can save up to 45% on your EMIs.
The simple application process to qualify without any hassles
Unlike a regular loan for higher education abroad, a quick personal loan is easy to qualify for. The eligibility terms do not center around the student’s academic performance or career choice but rather on the parent’s financial profile. Below are the general eligibility terms that one needs to meet.
- You should be a resident Indian aged from 23 to 55 years of age
- You should be employed with an MNC, public or private organization
- Your net monthly income should meet the minimum requirement based on the city you live in
Instant approval and quick disbursal within 24 hours
Upon meeting the eligibility criteria, all you need to do is produce the necessary documents and you can begin to look forward to a speedy disbursal upon verification. With Bajaj Finserv, you can get access to the finances in just 24 hours and thus, make last-minute decisions a possibility. To expedite the entire application process, check your pre-approved offer beforehand. On sharing basic details like your name and contact number, you get instant approval through a tailored deal and hence, hasten the disbursal process.
So, identify a college and course and apply for a personal loan for higher studies to ensure that you settle for nothing but the best!
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